Futures contracts linked to Canada's main stock index rose Monday, supported by oil prices, as investors prepare for this week's highly anticipated U.S. presidential election and the Federal Reserve's policy decision.
December futures on the S&P/TSX index were up 0.4% as of 6:00 a.m. ET (11:00 a.m. GMT).
The US election scheduled for Tuesday is expected to be a high-stakes event, with polls indicating that Democrat Kamala Harris and Republican Donald Trump are neck and neck for victory.
As the United States is Canada's largest trading partner, the outcome of the election could have significant consequences for the Canadian economy and markets.
The election will be followed by the Fed's interest rate decision on Thursday, where market participants see higher chances for a 25 basis point cut.
Canada's energy sector could benefit from oil prices which strengthened by more than 2% after OPEC+ agreed to delay by a month the increase in oil production planned for December. [O/R]
The materials sector could take inspiration from stable gold prices and rising copper prices ahead of the election and the Fed's interest rate decision.
Later this week, domestic investors will focus on key employment data, among other things, to monitor the health of the Canadian labor market.
The minutes of the last monetary policy meeting of the Bank of Canada, during which an exceptional reduction of 50 basis points was announced, will also be on the agenda.
The composite index closed higher on Friday on gains led by stocks in the technology and consumer discretionary sectors, although it recorded a weekly decline.
On the corporate side, Gran Tierra Energy released its third quarter results and announced the discovery of a sixth consecutive oil field in Ecuador thanks to the Charapa-B7 well.
RAW MATERIALS
Or : 2 739,1 $ ; +0,15 % [GOL/]
US crude: $71.18; +2.4% [O/R]
Brut Brent : 74,77 $ ; +2,3% [O/R]
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($1 = 1.3911 Canadian dollars)
